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'Instead of crippling China's semiconductor ambitions, U.S. sanctions may be inadvertently accelerating them': Report claims Washington measures could be bolstering China's chip market
China's chip industry could emerge more resilient from U.S. sanctions
The world's foremost IC substrate maker has seen a rebound in orders at its Taiwan facilities to offset the slump, but executives remain concerned that escalating sanctions could see a permanent reduction in high-margin business from China's premium electronics sector. The upshot, according to industry observers cited in the report, is that this strong performance points to a "critical paradox," namely, Digitimes says that "instead of crippling China's semiconductor ambitions, U.S. sanctions may be inadvertently accelerating them," with domestic demand and supply chain localization creating a resilient ecosystem that "that could emerge stronger in the face of adversity." As mentioned, he branded the measures a failure, and specifically noted that companies are turning to Nvidia's Chinese rivals to make up for the dearth in U.S.-developed chips like its H20, giving its competitors a leg up rather than stifling the industry.
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